IRS Fresh Start Program
What is IRS Fresh Start Tax Debt Forgiveness Program?
One of the biggest unknowns to tax debtors is that under certain circumstances, taxpayers can have their tax debt partially or completely forgiven by the IRS. The provision of the law made it possible to pay these debts in full without exorbitant penalties or interests. This provision is known as the IRS Fresh Start Program that allows you to wipe clean all your debts. The IRS Fresh Start Program enables financially distressed taxpayers to resolve their tax problems, possibly quicker without being subject to penalties, tax liens, seizure of accounts, or wage garnishments.
Repayment options available under the IRS Fresh Start program
The IRS Fresh Start program has made it possible for debtors to choose among three available repayment options. These plans are intended to allow a convenient pay off of tax debts and protect IRS debtors from being subject to penalties. These repayment plans are as follows:
An extended installment agreement is recommended for taxpayers who owe the IRS an amount they are unable to pay in full. This agreement is a contract with the IRS to pay the taxes owed through a payment plan within a predetermined time frame without any penalties. There are four types of installment agreements that taxpayers can choose from based on how much they owe and their ability to afford monthly payments. The four agreements are:
- Guaranteed Installment Agreement (GIA)
- Streamlined Installment Agreement (SLIA)
- Partial Payment Installment Agreement (PPIA)
- Non-streamlined Installment Agreement (NSIA)
The OIC is not as commonly used as the Extended Installment Agreement. Nevertheless, it is a feasible repayment plan for taxpayers who intend to settle their IRS debts. When a taxpayer owes the IRS but cannot afford to pay the debt as a result of a drastic life event, such as loss of income or disability, the taxpayer may be able to offer the IRS a smaller amount as settlement. This process is called offer in compromise (OIC).
The offer can include a lump sum payment over 5 months or a series of payments over a period of 24 months. It is important to note that the chances of an OIC approval is higher if the taxpayer makes a reasonable offer to the IRS; such a proposal is based on the current financial situation of the taxpayer.
It is advisable to work with a tax professional who would submit an acceptable offer to the IRS on behalf of the taxpayer.
At Ultimate Tax Relief, we have experienced tax experts that will help you successfully navigate through this process.
What to Expect if Your Offer Is Accepted
The acceptance of the offer in compromise is the beginning of your opportunity for resolution. That means you would need to comply with all stages of the repayment plan to avoid termination. It is important to note that federal tax liens will remain until the payment plan is completed. If the payment plan exceeds 12 installments, we recommend creating a sound financial plan for the future.
Getting the Help You Deserve With Your Tax Debt
Tax debt relief is a crucial component of achieving financial freedom from the IRS. At Ultimate Tax Relief, we believe you should not do it alone; we want to give you a thorough review of your tax debt relief plan. We will walk you through the steps of tax relief, from why you need it to how it works. We will also answer all tax debt relief questions so you know exactly what to expect at every step of the tax relief process.
Other Important Information
If there is no Notice of Federal Tax Lien filed against you, one may be filed as part of the review and approval process during negotiation phase of the offer. The payment and assessment process may also be extended during the review period, and your nonrefundable payments take the place of any pre-existing installment plan you might have been paying toward. There is also an online self-help tool that can help you better understand the IRS evaluation process of applications and deciding what to extend as a compromise.
If you are currently in the process of bankruptcy, the IRS will not approve the offer proceedings because your tax debt might fall under the purview of the judge ordering your debt restructure and discharge. It is important to handle any bankruptcy proceedings before beginning the process of settling a compromise with the agency.
We will help you prepare a great offer, coupled with a well-detailed financial plan, which would increase the chances of the IRS accepting the OIC offer.
The IRS files federal liens against taxpayers who have unpaid tax obligations. The IRS generally notifies taxpayers after a federal tax lien has been filed, followed by required statutory warnings. The IRS will first send a Notice of Demand for Payment which specifies the amount due and the opportunity to disagree with contrary evidence or agree with a payment option. Consequently, the IRS will impose a tax lien on the taxpayer.
However, the provision of the law allows a taxpayer the option of “Tax Lien Withdrawal” to defaulters who pay off their tax debt completely by means of direct debit repayment. At Ultimate Tax Relief, we will help you set up the direct debit repayment plan, and then submit a formal request to withdraw the tax lien from your accounts or assets. If the withdrawal is successful, we might also be able to prevent such debts from being reported to the credit reporting agencies.
In summary, we will educate you on all the legal options available based on your unique situation for removing your tax lien, and at UTR we are here to offer such Services.
Our tax professionals are dependable and equipped with the knowledge that will help to determine which repayment option under the IRS Fresh Start Program is suitable for you.
At Ultimate Tax Relief, we are here to take on the burden and assist you in making the process easier.
CONTACT INFORMATION
Phone: 800-674-4449
Email: info@ultimatetaxrelief.com
Address: 9458 Lanham Severn Road, Lanham, Maryland 20706